OFG Bancorp (NYSE:OFG) Q2 2023 Earnings Conference Call July 20, 2023 10:00 AM ET
Company Participants
Jose Rafael Fernandez - President and CEO
Maritza Arizmendi - CFO
Conference Call Participants
Timur Braziler - Wells Fargo Securities
Brett Rabatin - Hovde Group
Alex Twerdahl - Piper Sandler
Kelly Motta - KBW
Bernard Horn - Polaris Capital Management
Operator
Good morning. Thank you for joining OFG Bancorp's Conference Call. My name is Chelsea, and I will be your operator today. Our speakers are Jose Rafael Fernández, Chief Executive Officer and Vice Chair of the Board of Directors; and Maritza Arizmendi, Chief Financial Officer.
A presentation accompanies today's remarks. It can be found in our Investor Relations website, on the homepage, in the What's New box or on the Quarterly Results page.
This call may feature certain forward-looking statements about management's goals, plans and expectations. These statements are subject to risks and uncertainties outlined in the Risk Factors section of OFG's SEC filings. Actual results may differ materially from those currently anticipated. We disclaim any obligation to update information disclosed in this call as a result of developments that occur afterwards. All line have been placed on mute to prevent background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions will be given at that time.
I would now like to turn the call over to Mr. Fernandez.
Jose Rafael Fernandez
Good morning, and thank you for joining us. We are pleased to report our second quarter results. All our businesses performed well and contributed to another strong quarterly performance.
Highlights included excellent loan production, stable core deposits with low cumulative beta, increased operating leverage and capital continues to build. Our digital-first strategy continues to show excellent progress with higher sales service actions and lower branch visits. The result has been an overall increase in customer transaction activity. Key performance metrics continue at strong levels.
On the people front, we announced several executive leadership promotions and recruited a new executive to lead our retail channel business development efforts. For Puerto Rico, consumer liquidity is good and the economy continues to do well. Thanks to our team for their commitment to helping customers and the communities we serve to achieve their financial goals.
Please let's turn to Page 3 of our conference call presentation. Looking at the income statement, earnings per share diluted was $0.93, up 11% year-over-year. Core revenues increased 17% to $170.5 million. Net interest margin was 5.9%. Provision was $15 million. Non-interest expenses were $89 million and pre-provision net revenues totaled $80.8 million, up 22% year-over-year.